Managed Services

NTT Buys More Euro Smarts

NTT Group (NYSE: NTT) seems intent on buying its way into an entrenched position in the global integrated communications/IT services market through the acquisition of both large and small companies.

The "large" includes the recent deal to buy Dimension Data for US$3.2 billion, while mobile division NTT DoCoMo Inc. (NYSE: DCM)'s swoop on PacketVideo Corp. was no small matter at a cost of $112 million. (See NTT Splashes $3.2B on DiData and Light Reading Cloud Services Benchmark Survey Final Report.)

The "small" include the acquisition by NTT Communications Corp. (NYSE: NTT), the carrier's international enterprise services division, of Swedish managed security services specialist Secode AB for an undisclosed amount. NTT says the move will help it offer security services to corporations in Northern Europe, boost its European workforce by about 90 staff, and add to its security operation center assets that support the whole of Europe. (See NTT Com Buys Secode.)

NTT already has such a center in Germany, which it acquired as part of last year's deal to buy IT services firm Integralis. (See NTT Beefs Up in Europe.)

The move marks increasing activity in two areas – carriers looking to offer managed security services and the acquisition of IT services firms by telecom operators. (See BT Lands Managed Security Deal, Cloud Computing's Security Problem, Cox Business Takes Managed Security Nationwide, Colt Targets SMEs, Verizon Puts Security in the Cloud, Qwest Taps IBM for Managed Services, and Tata Adds to Managed Security.)

The market can expect to see more M&A action involving telecom operators and IT firms, believes Ovum Ltd. principal analyst David Molony. "NTT's Dimension Data deal has set the cat amongst the pigeons. The telco/IT pairing has been a tale of caution so far, and the carriers have been holding off. Now the NTT deal shows that if you're looking to get into the global services market, then you'd better hurry up. Acquisitions will be the way to achieve that aim, as building organically takes a long time," notes the formerly facially hirsute analyst.

— Ray Le Maistre, International Managing Editor, Light Reading

Be the first to post a comment regarding this story.
Sign In